OREANDA-NEWS. On June 30, 2008 OJSC Polyus Gold (RTS, MICEX and LSE - PLZL), Russia’s leading gold producer, and Russia’s central research institute for geological exploration of non-ferrous and precious metals (TSNIIGRI) decided to cooperate on preparation of a scoping study for development of the Sukhoi Log deposit in Irkutsk region of Russia, reported the press-centre of Polyus Gold.

On June 19, 2008, TSNIIGRI became the winner of the open tender for the right to prepare the scoping study for industrial development of the deposit.

The purpose of the scoping study preparation is to define the licence terms for Sukhoi Log development, to ensure maximum efficiency of the project, as well as to prepare a list of technical requirements for the potential bidders.

The scoping study will specify the research and development works that have to be done to define all the technical parameters of Sukhoi Log development, and will prepare the initial set of geological documents on the deposit.

TSNIIGRI and Polyus Gold will work on the scoping study preparation till the end of 2008.

Commenting on the event General director of Polyus Gold Evgueni Ivanov said that he is pleased with the continued cooperation with such a prominent research institution as TSNIIGRI. According to Mr. Ivanov, “the joint efforts of the leading research institute in precious metals and the country’s largest gold producer will ensure that next stage of Sukhoi Log preparation for industrial development will be most efficient”.

The Sukhoi Log deposit is located in Irkutsk region, 135 km. to the North of Bodaibo town. The recent revaluation of the deposit’s reserves, in accordance with the Federal agency for subsoil usage, showed that the capital expenditure to develop Sukhoi Log is estimated at \\$1,6 billion, the total life of the mine revenues - \\$30 billion, the state’s income – over \\$2,5 billion.

Central research institute for geological exploration of non-ferrous and precious metals (TSNIIGRI), of Rosnedra of the Russian Ministry of natural resources, is Russia’s leading research institution responsible for prospecting and evaluation of non-ferrous and precious metals and diamond deposits, providing methodological support for exploration works, reserves calculation, feasibility preparation as well as ore processing technologies development.

In 2006-2007 TSNIIGRI, in cooperation with Polyus Gold, on order of Federal agency for subsoil usage carried out revaluation of Sukhoi Log reserves. After the revaluation the deposit’s reserves were doubled to 1,920 tonnes (61.7 m oz) at 2.8 g/t.